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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 11 August 2025
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Displaying 1428 contributions

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Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 29 October 2024

Shona Robison

Yes, of course—

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 29 October 2024

Shona Robison

Those are similar issues to those that have been raised by the sector in England. Just last week, I had a meeting with a number of people who are involved in the sector and I would say, as I said then, that we are talking about orphan buildings for which there are developers who have responsibility. We would expect them to get on and remediate and meet the cost of that.

There is then the question of who pays for the remediation of buildings where no developer can be identified. It is not fair for that cost to fall on taxpayers and the public purse. It will, of course, require an element of funding from the public purse, and we have set out that we will meet our obligations there. However, a contribution from the sector is important, given that those buildings will require remediation.

We have set out an indication of what revenue we think that the order will raise in line with what the UK Government has anticipated that it will raise, and whatever it raises will be only a contribution to the overall costs of orphan buildings. It will not meet the entire cost; it is a contribution. It is about balance. It is not unfair to ask the sector to make a contribution, as the public purse will make a contribution to the remediation of buildings where there is no developer that can take responsibility for them.

That is my top-line response. I can understand the issues raised, but our approach is about putting in place a proportionate response.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 29 October 2024

Shona Robison

It will be in year 4.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 29 October 2024

Shona Robison

So it might be an overestimate, but that is the case for good reason.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 29 October 2024

Shona Robison

I will come back to you on that point specifically.

Although the issues that stakeholders raised with me included an element of the impact on land value and also whether behaviour will pass that on to house prices and whether that would then be a deterrent, their main issue was the cumulative impact—it not just about one impact, but what it looks like when it is all added up together. I said that we were very cognisant of that and were mindful that, if other things were to impact on the sector—on land value and house prices—we had to think of it in that context.

However, we will come back to you on your specific point.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 29 October 2024

Shona Robison

Our judgment is that it should certainly be set at the same level initially, and the figure of £30 million is the amount that it would raise on that basis. Those issues need to be discussed in more detail, but we want to set the levy at the same level initially.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 29 October 2024

Shona Robison

I will bring in Stephen Lea-Ross on that. It is really difficult to say. I cannot tell you what the global cost will be of remediating all the buildings, because we just do not know the extent. A partial remediation of a building could cost £300,000 and a full remediation could be upwards of £800,000, which is at least a £500,000 difference. We just do not know at the moment. Indeed, some buildings might require no remediation. As things stand, until the actual technical assessment is done, it is really difficult to assess that.

I have told the sector that I understand the point about certainty. I would not want a situation in which the rate of the levy constantly changes. We are working with the sector to try to have a period of stability, and we have set out the amount that we expect to receive from the levy. We can factor that in and maybe have some points of review, where we take stock of the actual SBA remediation costs annually and where the levy sits in relation to that. As you can imagine, I want to give the sector a bit of certainty in the initial phase.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 29 October 2024

Shona Robison

It is a very complex system, as it is in England and Wales.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 29 October 2024

Shona Robison

The issues are exactly the same, and the timeframe will be exactly the same, in England and Wales. It will be a 10-year programme. For complex buildings, it will take some time for the work to be completed; for others, it will not. For home owners who have faced a level of uncertainty, it is important that, through the SBA process, we are able to, I hope, give the green light and a clean bill of health to a lot of buildings, or say that only marginal remediation is required, so that people can get on with selling properties that are mortgageable again. Exactly the same issues are being faced in England, Wales and elsewhere.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 29 October 2024

Shona Robison

That is an interesting question. It depends on how far the chancellor goes—is she talking about just financial assets or assets per se? I suspect that she will restrict herself to financial assets, such as those relating to the student loan book and so on. I would favour the rules being tweaked to enable us to have the maximum benefit and flexibility, with at least the cut to capital funding being reversed, but we want significant investment beyond that so that we have a line of sight to be able to invest in affordable housing and so on.